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Senior Contributor

Deficit worse then estimated.

The Seattle Times:

CBO: Obama understates deficits by $2.3 trillion

A new assessment of President Barack Obama's budget released Friday says the White House underestimates future budget deficits by more than $2 trillion over the upcoming decade.

The Associated Press

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WASHINGTON —

 

 

 

A new assessment of President Barack Obama's budget released Friday says the White House underestimates future budget deficits by more than $2 trillion over the upcoming decade.

The estimate from the nonpartisan Congressional Budget Office says that if Obama's February budget submission is enacted into law it would produce deficits totaling $9.5 trillion over 10 years - an average of almost $1 trillion a year.

 

 

Obama's budget saw deficits totaling $7.2 trillion over the same period.

 

 

 

The difference is chiefly because CBO has a less optimistic estimate of how much the government will collect in tax revenues, partly because the administration has rosier economic projections.

 

 

 

But the agency also rejects the administration's claims of more than $300 billion of that savings - to pay for preventing a cut in Medicare payments to doctors - because it doesn't specify where it would come from. Likewise, CBO fails to credit the White House with an additional $328 billion that would come from unspecified "bipartisan financing" to pay for transportation infrastructure projects such as high speed rail lines and road and bridge construction.

 

 

 

Friday's report actually predicts the deficit for the current budget year, which ends Sept. 30, won't be as bad as the $1.6 trillion predicted by the administration and will instead register $200 billion less. But 10 years from now, CBO sees a $1.2 trillion deficit that's almost $400 billion above White House projections.

The estimated cost of the new health care law increased by about $90 billion, to $1.13 trillion, from 2012-2021. But the budget office didn't issue a new estimate of the taxes and savings in the legislation that pay for Obama's expansion of health insurance.

 

 

 

CBO had earlier projected the total of those offsets at $1.25 trillion. So the margin by which the new health care law reduces federal deficits appeared to be shrinking.

7 Replies
Highlighted
Advisor

Re: Deficit worse then estimated.

Too bad we don't have a vice president who could summarily declare that "deficits don't matter"..
Highlighted
Senior Contributor

Re: mulatto a proven liar again ---no new news there

there is no end to the lies odummer and the dumocrats will try ---aint that right gooboy and ole yeller

Highlighted
Senior Contributor

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Highlighted
Senior Contributor

Re: mulatto a proven liar again ---no new news there

Ollie, you must admit Repubs will do the same as will most governments.  They always paint the rosiest picture the can so it reflects better on themselves.   It looks like many of the Japanese people have come to the conclusion that their government was giving out info on their damaged nuclear plants that was a little to rosy as well.

Highlighted
Advisor

Re: Deficit worse then estimated.

What did it mean when biden said we had to spend our way out of bankruptcy?
Highlighted
Veteran Advisor

Re: Deficit worse then estimated.

It meant that when people spend money to buy products instead of putting it away, businesses can stay in business instead of declaring bankruptcy and going under.  Of course, that was before so many had already lost their jobs.  That would be very hard to do now so here in Arizona, the legislature just cut corporate taxes by 27% so that when people don't buy as much, the corps will have more money to try to survive.  Of course, the downside of that is that they still want to get the same amount of money in to the state coffers so guess from where it has to come--the lucky working stiffs who still have a job!  Cutting state funds to all levels of education in the state, cutting all funding for organ transplants (makes you wonder how much longer they will be asking you to sign up to be an organ donor on your driver's license), removing a few hundred thousand from their health care, etc, etc.

Highlighted
Veteran Advisor

Re: Deficit worse then estimated.

Sure he did.